This budget will not boost investors' confidence: FICCI

The government's new budget will not help boost investor confidence, said Mohammad Zaved Akhtar, president of the Foreign Investors' Chamber of Commerce and Industry (FICCI), an apex body of foreign investors in the country.

"The finance adviser himself said this is not a good budget. As a result, it does not appear to be conducive to increasing investment or investor confidence. We are still waiting," Akhtar said at a press briefing held at a hotel in the capital today (4 June).

"Foreign investment depends on policy relevance, a simpler tax regime, and consistency. The credibility of policy here is very low. How can you invest in such an economy?" he added.

"The bigger question for all of us now is given that the interim government theoretically operates outside the traditional operating constraints and political motivation, is the budget bold enough to garner significant reforms and drive fiscal change or will it create a conducive environment for trade and commerce," said Mohammad Zaved.

He said, the Finance adviser has given a guidance that the intent of the budget is to strengthen the foundation of the economy rather than vitalize the economic growth potential of the country.

"While the rhetorics in the budget speech does eloquently speak about containing the inflation, driving youth employment and facilitating private investments, the desired interventions seem too far off from the required reform," he added.